Following Quarter 1 marked by cautious optimism, Q2 2025 has seen Namibia’s property market shaped by a mix of policy reforms, infrastructure commitments and disciplined investment activity. Demand for housing remains strong, but affordability constraints, slow household credit growth and global trade risks continue to influence market performance.

Policy Reforms

Namibia’s housing finance landscape is set for a major shift with the introduction of the Government Institutions Pension Fund’s (GIPF) Pension-Backed Home Loan Scheme (PBHLS). The Fund has selected First Capital Housing Scheme and Kuleni Financial Services to administer this facility, which for the first time will allow members to borrow directly from their pension savings to purchase or build homes, renovate, or settle mortgages in both urban and rural areas.

Repayments, including interest set at the repo rate plus 2.5%, will be channelled back into the member’s own pension account.

Rollout is expected once final agreements and gazetting are complete, and importantly, other pension funds in the country are also preparing to adopt similar models—broadening affordable housing access for thousands of Namibians.

Monetary Policy

The Bank of Namibia maintained the repo rate at 6.75% at its April and June meetings, prioritising currency stability amid external risks and SACU revenue concerns. The central bank has instructed commercial banks to narrow the gap between the repo and lending rates by a total of 25 basis points in two phases – 12.5 basis points in September and another 12.5 basis points in December. This measure aims to improve monetary policy transmission and ease debt servicing costs for households and SMEs.

Construction Sector Outlook

The value of approved building plans in Windhoek almost doubled year-on-year to N$1.7 billion by June, driven by early-year approvals for large-scale commercial and mixed-use projects. Approvals slowed in Q2, with June down 27% month-on-month, although Swakopmund posted modest gains.

Looking ahead, upcoming projects such as the N$750 million NUST Kleine Kuppe campus and Oryx Properties’ Goreangab and Maerua Mall upgrades are expected to inject fresh momentum into the sector.

Urban Infrastructure

The National Housing Enterprise (NHE) will construct 231 low-income units in Otjomuise, Goreangab, and Windhoek West at a cost of N$70.3 million to help address Khomas Region’s housing backlog. Collaborations with the Shack Dwellers Federation are also driving settlement upgrades, water infrastructure installations, and housing block formalisation.

Windhoek’s revised electrification policy now allows informal household connections without full township formalisation, potentially linking 9,400 households annually and generating N$70 million for essential services. Nationally, N$388.1 million has been allocated to connect 10,000 households in 2025/26, contributing to the goal of universal access by 2040.

Looking Ahead

The second half of 2025 will test Namibia’s ability to turn policy reforms and infrastructure commitments into tangible results. Key watchpoints include the rollout of the Pension-backed Home Loan Scheme, the start of major construction projects, and the impact of global trade tensions – particularly U.S. tariffs on South African exports – on material costs and investor sentiment.

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